HIROSHIMA, Japan-Mazda Motor Corporation has announced
it received approval at the end of 2005 to establish a local distribution
company in Moscow. The new national sales company (NSC) will commence
business operations in April 2006. Mazda expanded the scope of what had
been its representative office in Moscow by injecting 100 percent of
the capital into the new distribution company. Mazda's new NSC has the
goal of further strengthening sales in the rapidly expanding automotive
business in Russia

The new company is called "Mazda Motor Rus, OOO." ("OOO" is the Russian
equivalent of limited liability company defined under its legal code.)
Mazda's representative office in Russia was set up in December 2004,
and its head, Joerg Schreiber, has been appointed managing director of
the new national sales company. Mazda Motor Rus will play a unifying
role in several areas of the Mazda business in Russia, such as importation
and distribution of Mazda-brand vehicles, parts and accessories; improving
technical skills and service instruction for employees; and marketing
efforts. These measures are Mazda's response to the rapid growth of the
automotive business in Russia. With 20 employees as of December 2005,
preparations for the start of business operations are proceeding smoothly
to meet the projected start of operations in April 2006.

"Mazda is moving into high gear to raise our profile and develop our
business infrastructure in Russia, " said Daniel T. Morris, who is responsible
for Mazda's global Marketing, Sales and Customer Service Division as
a senior managing executive officer. "Our new national sales company
is another step forward, established to provide unified and consistent
support from Mazda to our dealers and, most importantly, our customers.
By locating in the capital city, which is also a hub of the auto industry
in Russia, we can move swiftly and efficiently to achieve maximum results
in this growing market."

Mazda began full business operations in Russia in 2003, with strong
sales growth attributable to the favorable reception of the Mazda3 and
Mazda6. In 2004, Mazda sold 8,465 vehicles in Russia, a 360 percent increase
compared to the previous year's result. Sales mushroomed in 2005 to 21,120
units, up nearly 150 percent on 2004's results, which made Mazda the
fastest growing brand in Russia for two consecutive years. Further growth
is expected this year, with 28,000 unit sales projected in 2006, a rise
of 30 percent compared to 2005.